What is Management expense ratio (MER)?
The management expense ratio, or MER, is the Canadian name for a fund's total yearly cost as a percentage of its assets. It combines the management fee, the fund's operating expenses and, for many mutual funds, the trailing commission paid to the selling firm. It is deducted inside the fund before returns are published.
Why Management expense ratio (MER) matters
Two Canadian funds that hold similar things can carry very different MERs, and the gap comes straight out of your return.